Culture is future » Financing and economic models

02.06.2012

Creating jobs, investing in cinema !

The CNC (French National center of cinematography), has published in December 2011 a study on employment in movies. 528 movies over 4 years (2006 to 2009 have been analyzed).

 

Key figures

Movies approved by the CNC (602): 23.4 % in 2006, 25.9 % in 2007, 25.6 % in 2008, 25.1 % in 2009

TAX DEDUCTION Movies and tax deduction (from 2006 to 2009) : 426 (70.8%) with tax deduction, 176 (29.2%) tax deduction.

EMPLOYMENT sample of the study : 518 movies (analysis perimeter of Groupe Audiens), figures of production : 100 770 employees, 576M Euros of payroll (artists, executives and non executives)

SOCIO-PROFESSIONAL CATEGORY: 7,9% executives, 19.9 % non executives, 72.2 % artists

 

A few learnings…

Tax system and employment in France

Underlining the importance of a public private cooperation in the cultural sector beyond grants or agreements, the study show the major role of tax system.

One of the tendencies that has emerged in the number of beneficiaries of tax deduction : 78.8 % of the sample. Tax deduction is a fall of tax for producing films. For instance, the law passed in 2004 in France is about a tax deduction of 20 % engendering a raise of shootings on the territory. Moreover, movies with tax deduction employs more persons : artistic jobs represents 81 % of the total of persons, and 60.9% for the movies without deduction. France is not the only one to propose tax deduction to sustain its economic and cultural development. In 2009, the “movie” tax deduction in New Orleans engendered the creation of 7,000 jobs in the movie industry and for one dollar invested, there were 6.64 dollars of consequences (study Kurt Salmon for the Forum d’Avignon 2010).

The dispersion of jobs profiles in the French movie sector

The study underlines an important diminution of the executives for the artists while the budget raises up (49.5% for the movies with less than a 1M Euros to 34.4% for movies with more than M Euros. In the movie sector, the executives represent a fixed cost related to the budget of a movie. The proportion of them diminish with the raise of the budget, where will be privileged the creative capital of the work, through the augmentation of the number of artists (22.2 % for movies with less than a million Euros to 30.9% for movies with more than 7M Euros.

 

Sources

- Study “the employment in the movie sector” by the CNC with the Groupe Audiens, December 2011

- Study “Culture and economic performance : what strategies for employment and the development of territories?  By the Forum d’Avignon and the consulting group Ineum Consulting / Kurt Salmon, 2010

- Website of the CNC : www.cnc.fr